Weak demand drives down corn prices in Brazil

Weakened demand keeps corn prices falling in the Brazilian market.

According to Cepea researchers, consumers prioritize the use of stocks and await new devaluations, based on the possibility of a good harvest in the second season – with the favorable climate, crop development is considered satisfactory in most regions, and production should increase in relation to the previous season.

Cepea researchers indicate that, despite sellers' attention being focused on the development of the harvest, these agents remain more flexible in negotiations, whether in terms of values or payment terms.

This behavior may also be related to a fear of further price drops, considering the current scenario of greater supply, favorable weather and weakened demand.

In this context, the pace of business is slow in the domestic market. In April, the Esalq/BM&FBovespa Indicator (Campinas region – SP) accumulated a drop of 8.6%.